The Federal Trade Commission yesterday announced a settlement that permanently bans the operators behind the Growth Cave enterprise from marketing or selling credit repair services or business opportunities, capping a case the agency says caused nearly $50 million in consumer harm. The orders impose lifetime industry bans, require the liquidation of high-value personal assets, and enter judgments totaling $48.6 million.
According to the FTC, Growth Cave and its principals promoted a series of business opportunity programs that promised consumers significant income with minimal effort. When those programs failed to deliver, the defendants allegedly pivoted to selling credit repair and funding services, charging thousands of dollars while leaving consumers worse off financially.
The settlement resolves claims against all remaining defendants in the case and follows an earlier stipulated order against the operation’s manager. Under the final orders, the defendants are permanently prohibited from:
- Marketing, selling, or assisting others in selling business opportunities
- Engaging in any credit repair activities or holding an ownership interest in a credit repair business
- Making misleading earnings claims, testimonials, or representations involving artificial intelligence
The court entered monetary judgments of $48,597,538, which are partially suspended based on the defendants’ inability to pay. Even so, the orders require aggressive asset liquidation. One defendant must sell a multimillion-dollar home and liquidate investment and bank accounts, while another is required to sell luxury vehicles, including a Rolls-Royce and a Ferrari, with proceeds directed to consumer redress .
Read one order. Read the other order
